An open-loop approach for a stochastic production planning problem with remanufacturing process

Abstract

A stochastic linear production planning problem with chance-constraints is introduced in order to provide a production plan that optimizes a reverse logistics system. Such a system is composed of two channels: in the forward channel, new and remanufactured products are produced and stored into a serviceable unit, while, in the reverse channel, used products collected from market are stored into a returnable unit. The uncertainties about fluctuation of demand and amount of returnable are the reason of the stochastic nature of the problem. Since global optimal solution is not easy to be achieved, near-optimal solutions become viable alternatives to be explored. In this paper, an equivalent deterministic version of the stochastic problem is presented. This equivalent problem provides an open-loop solution that is used to provide production scenarios. An example illustrates the applicability of this methodology by creating two distinct production scenarios in order to answer the following question: "Is it possible to reduce the total production cost of a company by increasing the return rate of collecting, even knowing that the cost for remanufacturing is greater than the cost for manufacturing new products? © 2013 Springer-Verlag.